If a garden center is considering the purchase of a new tractor with an initial investment cost of $135,000, and the center expects a return of $31,000 in year one, $20,000 in years two and three, $14,000 in years four and five, and $12,000 in year six and beyond, what is the payback period?

If a garden center is considering the purchase of a new tractor with an initial investment cost of $135,000, and the center expects a return of $31,000 in year one, $20,000 in years two and three, $14,000 in years four and five, and $12,000 in year six and beyond, what is the payback period?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EA: If a garden center is considering the purchase of a new tractor with an initial investment cost of...

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